SVM - Silvercorp Metals, Inc. (NYSE Stock)

[Volatile22]

SVM stock is another Chinese company based in Canada.

Silvercorp Metals Inc. (Silvercorp) is engaged in the acquisition, exploration, development and mining of high-grade silver-related mineral properties in China and Canada. Silvercorp is the primary silver producer in China through the operation of the four silver-lead-zinc mines at the Ying Mining Camp in the Henan Province of China. Silvercorp is building the GC silver-lead-zinc project in Guangdong Province as its China production base, which will be followed by the third production base at the BYP gold-lead-zinc project in Hunan Province. During fiscal year ended March 31, 2011(fiscal 2011), the Company mined a 592,330 tons of ore. In fiscal 2011, 596,735 tons of ore was milled. During fiscal 2011, metals production were 5.3 million ounces of silver, 3,200 ounces of gold, 69 million pounds of lead and 16.3 million pounds of zinc. In January 13, 2011, Silvercorp acquired 70% interest in Xinshao Yunxiang Mining Co., Ltd.

They received an anonymous letter alleging potential accounting fraud. This could be another delisting like SNOFF and LGFTY. I wont go near this one for now, but could be interesting to watch the drama unfold.

News about fraud allegations:

Silvercorp Metals Inc. (SVM.T), a silver miner active in China, moved quickly Friday to deny allegations of accounting fraud against the company contained in an anonymous letter.

The Vancouver-based company, which said it's China's largest primary silver producer, received a copy of an anonymous letter sent to the Ontario Securities Commission and others alleging a "potential $1.3 billion accounting fraud at Silvercorp." The letter's author said his firm held a short position in the company's stock, Silvercorp said, noting a sharp increase in the short position of its shares over the past two months.

Silvercorp said the allegations contained in the letter, including that the company misstated its profit for calendar 2010 and grossly overstated its financial position, and that the grade of its deposits is "too good to be true," are all false.

Other companies active in China have been targeted by similar allegations in recent months, among them tree-plantation operator Sino-Forest Corp. (TRE.T). Toronto-listed Sino-Forest saw its stock plunge after short seller Muddy Waters LLC issued a scathing report on the company in June. Trading in Sino-Forest was later halted and its top executive forced to step down.

Silvercorp has set up a task force of independent directors to work with regulators to investigate and discover the identity of the party behind these allegations. It said it will pursue all legal options to recover any damages incurred by the company as a result of these allegations.

[BadThad]

The Chinese drama continues. LOL

[alexkube11]

I think they are INNOCENT! Look here, Silvercorp Fights Off Short Seller Accusations | Benzinga, hit the link for seeking alpha. They have addressed all those accusations. I'm not too worried, just hope there is no takeover or things blow up like Sino-Forest back in August.

[BadThad]

Welcome to SMC!

It's enough to keep me away, there's just been too many problems. Also, Benzinga cannot be trusted at all. They've published outright lies in the past. Always independently verify ANYTHING you see on that website.

[dots_thots]

I like this stock. I agree about being cautious but I've owned them for 3 years now. They consistently met targets and produced the goods. And they pay a dividend. They have very high grade mines with a great production pipeline.

I think that bad press was a huge, annoying distraction. They've been above $15 before and I think they'll be back there once a scared investors realise silver isn't going back under $20.